Aspen Technology Inc (AZPN)

Debt-to-equity ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022
Long-term debt	US$ in thousands	—	—	—
Total stockholders’ equity	US$ in thousands	12,812,900	13,070,900	13,169,400
Debt-to-equity ratio		0.00	0.00	0.00

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $12,812,900K
= 0.00

Aspen Technology Inc has consistently maintained a debt-to-equity ratio of 0.00 for the past three years, as indicated in the data provided for June 30, 2022, June 30, 2023, and June 30, 2024. A debt-to-equity ratio of 0.00 signifies that the company has no debt on its balance sheet in relation to its equity during these periods. This could suggest that Aspen Technology Inc primarily relies on equity financing to fund its operations rather than taking on debt. It may indicate a conservative approach to capital structure management, where the company avoids the potential risks associated with debt, such as high interest payments and financial leverage.

Overall, the consistent 0.00 debt-to-equity ratio reflects a financially stable position for Aspen Technology Inc with a strong equity base supporting its operations. However, it is important to consider that a low or zero debt-to-equity ratio may also limit the company's financial flexibility and growth opportunities, as debt can be used strategically to finance expansion or investment initiatives.